Hotel performance across the Americas in May 2025 showed significant growth, particularly in South America, driven by increased leisure and corporate demand, large concerts, and economic factors such as exchange rates and inflation.
According to an analysis by STR, the hotel industry across the Americas has experienced a robust start to 2025, with significant growth in revenue per available room (RevPAR) observed in several key markets. This growth has been particularly pronounced in South America, where countries like Brazil, Peru, and Chile have consistently reported RevPAR gains each month. This article delves into the factors contributing to these trends and examines the performance across different regions within the Americas.
South America’s Strong Performance
South America has emerged as a leader in hotel performance for 2025, with Brazil, Peru, and Chile at the forefront. These countries have benefited from both increased average daily rates (ADR) and higher occupancy rates. Brazil, in particular, has seen a surge in both leisure and corporate travel, bolstering its hotel sector. The capital cities of these nations have been pivotal in driving this growth, showcasing solid performance metrics.
Argentina has also posted notable gains, particularly in ADR, although these figures are significantly influenced by the country’s exchange rates and inflation. The economic environment in Argentina has created unique challenges and opportunities for the hotel industry, as fluctuating currency values impact pricing strategies and profitability.
Central America and the Caribbean
In Central America, Panama experienced a strong start to the year, with significant gains in January and February. However, growth tapered off in subsequent months. Costa Rica’s performance was mixed, with strong ADR gains offset by declines in occupancy rates. The Caribbean saw impressive RevPAR advances in countries like the Dominican Republic and Puerto Rico, particularly in the year’s first two months.
North America’s Mixed Results
In North America, Mexico stood out as a top performer, achieving RevPAR gains just behind Argentina and Brazil. Canada also reported respectable year-to-date performance, with May marking the highest RevPAR gain thus far. The United States experienced a slight increase in performance, primarily due to a strong first quarter influenced by one-time events such as the U.S. presidential inauguration and the Los Angeles wildfires. However, hotel performance from March through May remained relatively flat.
Impact of Major Concerts
A significant driver of hotel performance across the Americas has been the influx of major concerts. From February to May 2025, numerous large concerts took place throughout the region, with Shakira’s “Las Mujeres Ya No Lloran World Tour” being a notable highlight. Her tour visited nine out of the twelve countries in the Americas, significantly boosting hotel occupancy rates.
Other major events included the “System of a Down – Wake Up! South America Tour,” which visited several South American countries, and a record-breaking free concert by Lady Gaga at Copacabana Beach in Rio de Janeiro, Brazil, attracting an estimated 2.1 to 2.5 million fans.
Future Outlook
Looking ahead, the hotel industry in the Americas is poised for continued growth, particularly in Central and South America. As summer progresses, the momentum from major concerts and events is expected to sustain hotel performance. Additionally, the economic challenges faced by travelers may encourage cost-conscious decisions, favoring the more affordable options available in these regions compared to the U.S. and major European tourism destinations. This trend is likely to support ongoing growth in the hotel sector across the Americas.
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